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Change in supply

When sellers offer different amounts of products for sale at all possible prices.

Elastic supply

When a small increase in price leads to a larger increase in output

Unit elastic

Change in price causes a proportional change in amount supplied.

Law of Variable Proportions

Measures the effect of changing one variable related to supply.

Inelastic supply

When small increase in price causes little or no change in supply.

Total product

The total output of a firm, business or company.

Marginal product

Extra output of total product caused by giving one more unit of variable output.

Stage III

Marginal product becomes negative during this stage of production.

Stage I

Marginal product increases with each new worker added during this stage of production.

Total cost

All fixed costs + all variable costs

Marginal cost

Cost that is incurred when a business produces one additional unit of a product.

E-commerce

Industry with very low fixed costs.

Marginal revenue

Money connected with the producing and selling of an additional unit of product.

Total revenue

Number of units sold x average price per unit

Break even point

Occurs when total sales equal total cost.